Supply chains impacted by shortage of workers

With the delta variant on the rise, everyday goods and services have experienced disruptions. And when one part of the supply chain experiences problems, the reverberations are felt throughout the industry.

Fixing supply chain woes will be a long process, and many of the problems currently being experienced are due to a lack of labor. For example, container ships off the coast of California are stuck at port because they don’t have workers to unload them. According to CNBC, a shortage of truck drivers, which is a problem that existed pre-pandemic and has worsened since, means goods can’t get from the ports to warehouses to then find their way to retailers and consumers.

With the economy beginning to bounce back, demand is increasing. As companies experience increases in demand, they’re also dealing with rising transportation costs and longer delivery times because of the labor shortages.

Labor shortages at every part of the supply chain are having an impact on all companies, and it’s beginning to impact economic growth. A survey led the U.S. Chamber of Commerce reveals that 90% of local chamber leaders say that labor shortages are limiting economic growth in local areas.

While an easing of the delta variant and its impact on every part of the supply chain will help the supply chain recover, so too will technology solutions. Automation is one solution that helps alleviate the shortage of workers; manufacturers have been moving toward automation since before the pandemic, and other industries are beginning to follow suit. 

While the pandemic will have long-lasting implications for how supply chains function, technology-led platforms such as artificial intelligence and automation will help companies respond and change how they operate.